Drawing from cognitive learning theories we hypothesize that exposure to nationalistic appeals that suggest consumers should shun foreign brands for moral reasons increases the general belief in consumers that buying foreign brands is morally wrong. In parallel, drawing from the theory of psychological reactance we posit that such appeals may, against their communication goal, increase the reputation of foreign luxury brands. We term the juxtaposition of these apparently contradictory effects the “Ambivalence Hypothesis.” Further, drawing from prior research on source-similarity effects (...) we posit that foreign luxury brands that communicate cultural proximity to target consumers (i.e., a local brand positioning) reinforce psychological reactance (“Clean Conscience Hypothesis”). We test these hypotheses experimentally in the context of luxury car brand advertising in China, a market that is heavily dominated by foreign brands, and therefore provides a breeding ground for ambivalent consumer reactions. Results show that exposure to nationalistic appeals enhances consumers’ national identity dispositions (patriotism, local identity), which results in higher levels of consumer ethnocentrism. Further, nationalistic appeals enhance the social responsibility associations that consumers hold for foreign luxury brands and their countries of origin, which results in a higher brand reputation. Finally, effects of nationalistic appeals on foreign luxury brand reputation are positively stronger for brands using a local vs. a foreign or a global positioning. These findings suggest that nationalistic appeals are a double-edged sword with important implications for ethics in political communication and luxury brand marketing. (shrink)

Behavioral ethics research has focused predominantly on how the attributes of individuals influence their ethicality. Relatively neglected has been how macro-level factors such as the behavior of firms influence members’ ethicality. Researchers have noted specifically that we know little about how a firm’s CSR influences members’ behaviors. We seek to better merge these literatures and gain a deeper understanding of the role macro-level influences have on manager’s ethicality. Based on agency theory and social identity theory, we hypothesize that a company’s (...) commitment to CSR shifts managers’ focus away from self-interests toward the interests of the firm, bolstering resistance to temptation. We propose this occurs through self-categorization and collective identification processes. We conduct a 2 × 2 factorial experiment in which managers make expense decisions for a company with commitment to CSR either present or absent, and temptation either present or absent. Results indicate that under temptation, managers make decisions consistent with self-interest. More importantly, we find when commitment to CSR is present, managers are more likely to make ethical decisions in the presence of temptation. Overall, this research highlights the interactive role of two key contextual factors—temptation and firm CSR commitment—in influencing managers’ ethical decisions. While limited research has highlighted the positive effects that a firm’s CSR has on its employees’ attitudes, the current results demonstrate CSR’s effects on ethical behavior and imply that through conducting and communicating its CSR efforts internally, firms can in part limit the deleterious effects of temptation on managers’ decisions. (shrink)